Afcons Infrastructure’s IPO consists of a fresh issue of 2.7 crore shares, totalling Rs 1,250.00 crore, and an offer for sale of 9.03 crore shares, amounting to Rs 4,180.00 crore.
The initial public offering (IPO) of Afcons Infrastructure opened for bidding on Friday looking to raise Rs 5,430 crore.
Afcons Infrastructure’s IPO consists of a fresh issue of 2.7 crore shares, totalling Rs 1,250.00 crore, and an offer for sale of 9.03 crore shares, amounting to Rs 4,180.00 crore.
The IPO closes for subscription on October 29, 2024 and has a price band of Rs 440 and Rs 463 per share, with a minimum application lot size of 32 shares.
For retail investors, the minimum investment requirement is Rs 14,816. For small Non-Institutional Investors (sNII), the minimum is 14 lots (448 shares) at Rs 207,424, and for big Non-Institutional Investors (bNII), it’s 68 lots (2,176 shares) amounting to Rs 1,007,488.
There is a reservation of up to 596,659 shares for employees, offered at a discount of Rs 44 per share.
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SHOULD YOU SUBSCRIBE?
An IPO report from Geojit Financial Services Limited said that the upper price band of Rs 463, AIL is trading at a P/E ratio of 38x for FY24, which is in line with its peers. With the government’s initiatives aimed at infrastructure development, including increased budgetary allocations and the rapid pace of urbanisation, AIL is strategically positioned for substantial growth. Considering its extensive experience in completing high-value and complex projects that offer better margins.
“Geographical diversification with operations across multiple sectors broadens their revenue base and mitigates risks. With a robust order book and a successful track record of project completion, we assign a “Subscribe” rating for medium- to long-term investment,” said an IPO report from Geojit Financial Services Limited.
“Given the company’s advanced equipment base and proven execution capabilities and strategic market position make them a key player in infrastructure sectors. Hence, by looking at all attributes we recommend investors to “SUBSCRIBE” the Afcons Infrastructure Ltd for long term perspective only,” said Rajan Shinde, Research Analyst, Mehta Equities Ltd.
The Grey Market Premium (GMP) for Afcons Infrastructure IPO is Rs 50 as of 10:30 AM on 25th October 2024. With a price band of Rs 463, the expected listing price is Rs 513 (cap price plus today’s GMP), indicating a potential gain of 10.80% per share.
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ICICI Securities Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the book-running lead managers for the IPO. Link Intime India Private Ltd is serving as the registrar for the issue.
The allotment for the IPO is anticipated to be finalised on Wednesday, October 30, 2024. The listing is set to take place on the BSE and NSE, with a tentative date of Monday, November 4, 2024.
